NEW YORK— The Federal Reserve Bank of New York today announced that Sarah Dahlgren, executive vice president and head of the Financial Institution Supervision Group (FISG), has announced her decision to resign from the Bank at the end of 2015.
Ms. Dahlgren is expected to remain in her current position as head of FISG until October 1, 2015, to help with a smooth transition and to continue to implement certain organizational initiatives, including the relocation of on-site examiners to the New York Fed’s downtown offices.
On October 1st, Ms. Dahlgren will assume the role of senior advisor to the president of the New York Fed, William C. Dudley. In that capacity, she will continue to assist in FISG’s leadership transition and provide expertise and guidance with respect to broad financial stability matters, including the Bank’s work on financial industry culture and ethics. As senior advisor, Ms. Dahlgren will no longer participate in the supervision of financial institutions or have access to confidential supervisory information.
The New York Fed, in consultation with the Board of Governors of the Federal Reserve System, will immediately begin the search for Ms. Dahlgren’s successor and is in the process of engaging an executive search firm.
“Sarah has been tireless in her service to the Bank and she has accomplished much during her long and distinguished tenure. She has never been afraid to take on the most difficult assignments and has done so with the highest levels of professionalism, integrity and dedication to public service. During the financial crisis, Sarah’s leadership managing the AIG intervention contributed greatly to the success of that effort, which in turn was essential to the Fed’s ability to stabilize the financial system and, as the head of FISG, Sarah implemented many important changes that improved the effectiveness of our supervision efforts,” said Mr. Dudley.
“Sarah drew on the lessons of the financial crisis to implement significant reforms and innovations in how we supervise the largest institutions, including increased engagement with senior leadership, enhanced understanding of the firms’ businesses and broader cross-firm perspectives. She will leave FISG stronger and better positioned to help the Federal Reserve System keep pace with the ongoing evolution of the financial system. I accepted her resignation with great regret and wish her well,” added Mr. Dudley.
Ms. Dahlgren became the head of FISG on January 1, 2011. She was named executive vice president and head of the newly formed Special Investments Management Group in January 2010. Ms. Dahlgren joined the Bank in 1990.